Kymera Therapeutics, Inc. (KYMR)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 headline results: Collaboration revenue $11.5M and EPS of -$0.95; revenue and EPS both missed consensus (revenue $24.2M*, EPS -$0.80*) as revenue recognition was lower and R&D investment remained elevated .
• KT-621 (STAT6) program advanced meaningfully: complete degradation in blood and skin at MAD doses ≥50 mg, biomarker effects comparable or superior to dupilumab, and clean four‑month GLP tox; Phase 1b AD patient data remains on track for Q4 2025 and Phase 2b (AD, asthma) starts in Q4 2025/Q1 2026 .
• Balance sheet strengthened: ~$1.0B cash as of July 31, 2025, extending runway into 2H 2028; completed $288M equity raise and received $85M upfront from Gilead CDK2 collaboration .
• Strategic updates: Sanofi prioritized KT‑485 (IRAK4) for Phase 1 in 2026 and discontinued KT‑474; Kymera selected an IND‑ready follow‑on STAT6 degrader; announced CDK2 molecular glue partnership with Gilead (up to $750M milestones plus tiered royalties) .
• Near‑term stock catalysts: Q4 2025 KT‑621 Phase 1b AD readout, ERS/EADV late‑breaking presentations on KT‑621, and continued clarity on Phase 2b design and initiation; financing and partnerships derisk execution path .

What Went Well and What Went Wrong

What Went Well

• KT‑621 Phase 1 healthy volunteer trial exceeded expectations: >90% degradation at low doses, complete degradation in blood and skin at MAD ≥50 mg, biomarker effects comparable/superior to dupilumab, and safety undifferentiated from placebo .
• Four‑month GLP tox clean; dose selection finalized for two Phase 2b studies and 1b AD enrollment pace strong with Q4 data on track .
• Balance sheet and strategic optionality improved: ~$1.0B cash, runway into 2028; Gilead CDK2 molecular glue partnership and Sanofi opting into KT‑485 expand potential future non‑dilutive funding and royalty streams .

Quote: “We raised approximately 288,000,000 in the follow on offering… increasing our cash position to $1,000,000,000 as of the July. Our well capitalized balance sheet should allow us… to initiate several phase three studies” .

What Went Wrong

• Revenue/EPS missed consensus: collaboration revenue $11.5M vs $24.2M*; EPS -$0.95 vs -$0.80*; driven by lower recognized collaboration revenue and sustained R&D ramp for STAT6/platform .
• YoY profitability deterioration: net loss widened to $76.6M vs $42.1M in Q2 2024 as R&D increased to $78.4M (from $59.2M) with program build‑out .
• Near‑term commercial visibility remains limited: no product revenue, milestone timing largely partner‑dependent; Q2 revenue fully attributable to Sanofi collaboration with remaining deferred revenue recognition now completed .

Financial Results

YoY comparison (Q2):

Consensus vs Actual (Q2 2025):

KPIs:

Revenue source:

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• Strategic execution: “We’re building what we believe is the best in industry oral immunology pipeline… deliver biologics like efficacy with the ease and convenience of an oral pill” — Nello Mainolfi .
• KT‑621 confidence: “We showed more than 95% degradation in both skin and blood at very low doses. The safety profile was undifferentiated from placebo… comparable or superior [biomarkers] to what dupilumab showed” — Jared Gollob .
• Financials and runway: “Revenue in the 2025 was $11,500,000… R&D $78,400,000… We ended June with a cash balance of $963,000,000… ended July with approximately $1,000,000,000… runway into the 2028” — Bruce Jacobs .
• Dose strategy: “We decided to explore an additional dose [in Phase 1b]… to inform our phase 2b dose choices… we have selected and finalized the three doses” — Nello Mainolfi .

Q&A Highlights

• Dose selection and range‑finding: Management added a second dose in 1b AD to refine Phase 2b choices; multiple HV doses met TPP, aiming for optimal risk‑reward in Phase 2b .
• Safety considerations (e.g., conjunctivitis): No signals in HV or tox; conjunctivitis in AD may be class‑related to IL‑4/IL‑13 pathway; will monitor in patients .
• Enrollment and oral preference: Strong interest driven by oral administration; placebo arm omitted to support enrollment; Phase 2b with longer dosing will further test differentiation .
• Next‑gen STAT6 and indication strategy: IND‑ready follow‑on degrader; optionality to split indications later; maintain competitive advantage .
• Partnerships rationale: CDK2 molecular glue addresses selectivity/brain penetration challenges vs inhibitors; Sanofi’s KT‑485 chosen for superior profile, with COPD opportunity being explored in class .

Estimates Context

• Q2 2025 actuals vs consensus: Revenue $11.5M vs $24.2M* and EPS -$0.95 vs -$0.80* — both misses. Revenue recognition was all from Sanofi, and Q2 included recognition of remaining deferred revenue, while R&D remained elevated to advance the STAT6 program and platform .
• The lumpy nature of collaboration revenue and milestone timing should temper read‑through on core program execution; Street estimates may need to reduce near‑term collaboration revenue assumptions and modestly widen loss forecasts given higher R&D intensity .

Note: Values marked with * are retrieved from S&P Global.

Key Takeaways for Investors

• Despite headline revenue/EPS misses, program execution remains strong; focus on Q4 2025 KT‑621 Phase 1b AD readout as the key catalyst likely to drive the stock more than financials .
• The KT‑621 data package (complete degradation, dupilumab‑like biomarkers, clean tox) supports rapid progression into Phase 2b and underpins potential first‑in‑class oral Th2 franchise across AD and asthma .
• Liquidity derisks late‑stage development: ~$1.0B cash post‑July with runway into 2H 2028 enables multiple Phase 3 starts without near‑term financing risk .
• Partnerships provide upside optionality: KT‑485 with Sanofi (up to $975M milestones, US profit‑share option) and Gilead CDK2 molecular glue (up to $750M milestones, tiered royalties) diversify future cash inflows .
• Expect estimate revisions: Lower near‑term collaboration revenue and slightly wider losses as R&D remains elevated to sustain pipeline velocity .
• Watch near‑term scientific disclosures: ERS/EADV late‑breaking KT‑621 presentations in September could further validate mechanism and support investor confidence ahead of the 1b AD readout .
• Competitive positioning: IND‑ready follow‑on STAT6 keeps franchise optionality and competitive lead; robust HV data and dose selection support potential best‑in‑class profile .

S&P Global consensus values used: Revenue Consensus Mean $24.164M*, Primary EPS Consensus Mean -$0.797*, Primary EPS – # of Estimates 16*, Revenue – # of Estimates 18*. Actuals per company filings and releases .